Modern Monetary Theory

Discussion in 'Markets & Economies' started by mmm....shiney!, Sep 14, 2019.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I thought we’ve discussed this before? Maybe another thread?

    There’s a world of difference between those 3 countries and the US, Oz, the UK etc. Hyperinflation requires demand to exceed the capacity of a nation to meet supply.
     
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  2. leo25

    leo25 Well-Known Member Silver Stacker

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    Think he has amnesia. Best to just let it be.
     
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  3. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    A world of difference haha. But the one thing that always fails is exactly the same everytime.
    A cool new name doesnt change math.

    Being the least dead zombie currency doesnt equal strength or guarantee immortality in any way and theres nothing to back up that claim.

    I only asked for one single example where it's worked at any time in human history but I'm the one with amnesia hehe. Crickets say chirp chirp.
     
    Last edited: Sep 27, 2020
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  4. willrocks

    willrocks Well-Known Member Silver Stacker

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    Hyperinflation is caused by dramatically increasing the amount of money in an economy. The increase in money supply is often caused by the government printing and infusing more money into the domestic economy.

    How does that relate to exceeding the capacity of a nation?
     
  5. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    It doesnt. They are confused. I chose to not even go there haha.
     
  6. alor

    alor Well-Known Member Silver Stacker

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    USA is up next

    :D
     
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  7. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Dramatically increasing the money supply doesn’t lead to hyperinflation if the country is able to meet consumer demand because prices of goods don’t hyperinflate.
     
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  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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  9. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    And someone without grey hair explaining it.
     
  10. willrocks

    willrocks Well-Known Member Silver Stacker

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    Hyperinflation is always preceded by a dramatic increase in money supply.
     
  11. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Have you watched the 2 videos?
     
  12. willrocks

    willrocks Well-Known Member Silver Stacker

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    Wouldn't a UBI reduce supply side when a significant number workers who decide to stay at home and 'follow their dream' ... etc.
     
  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Maybe. Or it could just make the productive even richer.

    UBI is not MMT policy though.
     
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  14. 66rounds

    66rounds Well-Known Member Silver Stacker

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    This presumes that the money supply is increased in a manner that does not impact supply and demand, such as through public works or infrastructure. What happens when the money supply is increased by a permanent daily living stipend, which is what will ultimately end up happening because politicians only look one term ahead and don't give a hoot about long term economics.
     
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  15. willrocks

    willrocks Well-Known Member Silver Stacker

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    They both seem to be touted by the same people. UBI proponents say it would be funded by MMT.
     
  16. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    UBI is not a MMT policy, despite what UBI proponents may argue.

    MM theorists are not socialists.
     
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  17. willrocks

    willrocks Well-Known Member Silver Stacker

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    I’m sure some are.
     
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  18. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Like a UBI?

    It’s not likely to lead to the trashing of the economic or political system a la Zimbagermanuela.

    Probably result in higher asset prices though and an increasingly growing gap between the have-nots who will piss it away on blow and hookers and the haves who will buy shares/gold, property and a new Mitsubishi Triton (tax deductible of course).
     
    Last edited: Sep 27, 2020
  19. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Socialism and MMT really don’t click because MMT values the private sector’s efficiencies in providing jobs and meeting consumer demand whereas socialists as we all know are caught up in the defective Marxist view that the productive capacity of society must be forcibly transferred from the private sector to the State and then eventually to the collective when the State finally decides that it voluntarily gives up the means of production.

    It’ll probably retain full ownership of the gulags though. Name them Victoria 1, Victoria 2, Victoria 3 etc etc :p
     
    Last edited: Sep 27, 2020
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  20. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Why is it not likely? No MMT proponent is able to give solid reasons why this wouldn't be the case.
     
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